Rs. 35,000. The Asset Disposal account will be prepared in the following manner:

Rs. , . The Asset Disposal account will be prepared in the following manner: Books of Karan Enterprises Machinery Disposal Account L.F. Machinery , , Provision for , depreciation , Profit & Loss (Loss on sale) , , , , , Machinery Account , , Machine Disposal , , , , , , , , Working Notes ( ) Computation of loss on sale of machinery Original cost of the asset being sold , , Less: accumulated depreciation ( , ) , ( ) Sales value realised ( , ) Loss on sale (i.e. Rs. , – Rs. , ) , Illustration On January , Khosla Transport Co. purchased five trucks for Rs. , each. Depreciation has been provided at the rate of % p.a. using straight line method and accumulated in provision for depreciation acount. On January , , one truck was sold for Rs. , . On July , , another truck (purchased for Rs. , on Jan , ) was sold for Rs. , . A new truck costing Rs. , was purchased on October , . You are required to prepare trucks account, Provision for depreciation account and Truck disposal account for the years ended on December , and assuming that the firm closes its accounts in December every year. Solution Book of Khosla Transport Co. Trucks Account J.F J.F , , Dec. , , (Purchase of truck) , , , , , , Truck disposal Dec , , , , , , Jul. Truck disposal Oct. , Dec. , ( Purchase of new truck ) , , , , Truck Disposal Account J.F J.F Machinery Provision for , Bank ( Sale ) , Profit & Loss , ( Loss on sale ) Jul. Machinery Jul. Provision for Jul. Profit & Loss , ( Profit on sale ) (Rs. , + , + , ) , Jul. Bank ( Sale ) , , , Provision for Depreciation Account Dec. Dec. , Truck Disposal , Dec. , Dec. , , , Truck Disposal , , Dec. , Dec. (Rs. + + ) , , , Working Notes . Calculation of